The 30% rise in wheat production in 2021/22 is already beginning to get noticed in the Argentinian foreign trade. With over 2.27 million tons exported in the first month of the crop season, the best record of wheat exports for the month of December is consolidated, when the new cereal crop season begins.

The record of wheat exports is not just for tons exported. Last month, it was also the best December for export value, which exceeded US$ 629 million. A strong rebound in FOB (Free on Board) export values helped this record contribution of foreign currency. The ton of wheat was exported with an FOB value of US$ 277/t, more than 26% above the US$ 219/t that were paid in December 2020. However, it should be noted that wheat export prices were far from being the highest on record. Higher values were recorded for this month in 2007, 2012, 2013 and 2014. The maximum value observed was in December 2013, with an export price of almost US$ 345/t.

With stock levels at record highs earlier this month, export prospects for January are also auspicious. According to shipment data, this month will close exceeding 3 million of tons exported. If the price levels observed in December are maintained, the export value of wheat in January would exceed US$ 850 million. In this way, it would become the best January for wheat in 14 years, and the second highest export value in history.

Wheat flour exports, for their part, have ended the 2020/21 business year at 0.57 Mt. With this, the volume shipped during the season was 8% below the 2019/20 exports, as well as the average shipped in the last 3 crops. Throughout the commercial year, the export performance of flour has been uneven, with six months with volumes exceeding the previous crop season and six months below their last mark. 

However, the largest export drop was recorded at the beginning of the crop season (December 20/January 21), when the lower harvest and the interruption of port activity limited exports. In contrast, the end of the crop season (November 21) showed a rebound in flour exports, which grew by 15% compared to October and 10% year-on-year. Thanks to the better prices of the last crop, the total FOB value exported in flour 2020/21 (US$ 186 M) fell by 7%, in a smaller proportion than the fall in volume. 

Shipments of wheat by-products (largely made up of small bran pellets) ended the 2020/21 crop season at 0.31 Mt and an accumulated FOB value of US$ 144 million. In this case, exports reduced their volume by 16% compared to 2019/20, but have increased their value by 5%.

During the first month of the 2021/22 crop season, flour exports have been 11% below the average for this month of the last 3 crop seasons. In contrast, shipments of by-products showed an improvement of 36% in December compared to the 3-year average.